// Tapestry Q4 net sales reach £1.23bn
// Shares fell 10% – the lowest in a decade
// The fashion retail group missed the average analyst expectation of £1.25bn
Tapestry has seen fourth quarter net sales reach $1.51 billion (£1.23 billion) but saw shares fall by 10 per cent – the lowest in a decade, as it failed to meet analysts expectations.
The fashion retail group which owns Coach, Kate Spade as well as Stuart Weitzman, saw net sales increase by two per cent on a reported basis and four per cent in constant currency for the full year ending June 29 2019.
However, it missed the average analyst expectation of $1.53 billion (£1.25 billion), according to Reuters.
“We remain steadfast in our strategic vision and focused on maximising the benefits of our global, multi-brand platform, while continuing to drive strength in our core Coach brand,” Tapestry chief executive Victor Luis said.
Meanwhile, gross profit for the quarter totalled $999 million (£816.19 million) on a reported basis, while net income was $149 million (£121.82 million) on a reported basis.
Net sales for Coach were $1.10 billion (£900 million), even with the prior year on a reported basis, or an increase of two per cent on a constant currency basis.
Global comparable store sales increased two per cent, including a benefit of approximately 150 basis points driven by an increase in global e-commerce.
Net sales for Kate Spade reached $332 million (£271.43 million), an increase of six per cent on a reported basis and seven per cent in constant currency.
However, global same-store sales at Kate Spade fell six per cent in the fourth quarter, while analysts had expected a 1.4 per cent rise.
Moreover, net sales for Stuart Weitzman were $85 million (£69.48 million), an increase of 17 per cent on a reported basis and 20 per cent in constant currency.
Tapestry expects revenues for fiscal 2020 to increase at a low-single-digit rate from fiscal 2019.